Crude Oil Market Commentary For Friday Morning

January crude oil gapped down and was sharply lower overnight as it extends this fall's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If December extends this fall's decline, the 75% retracement level of the 1998-2008 rally crossing at 44.81 is the next downside target. Closes above the 20 day moving average crossing at 60.93 are needed to confirm that a short term low has been posted. First resistance is the overnight gap crossing at 52.79. Second resistance is the 10 day moving average crossing at 56.68. First support is the overnight low crossing at 48.64. Second support is the 75% retracement level of the aforementioned rally crossing at 44.81